I'm referring to a new system. The secret part is that it's really no different other than in one small way.
To get the worker power and wages you rightfully suggest won't happen on their own, you only use your powers for good not evil. What I mean by that is that you don't crowd-fund, donate or otherwise help start a local business unless the new owner is on-board with these principles. Whomever is doing the organization of the fundraising (that's supplanting today's investment phase) needs to put the word out on what conditions this free help comes with. In my experience, entrepreneurs are much more worker friendly before getting corrupted by debt. They will easily agree to extra wages if it means they don't have to operate their business forever on a constant growth path.
I've done a similar business plan for a couple business startups so far. Here's one for a small company that molds plastic parts for making modular, air-tight greenhouses.
Case a) Borrow $9M, frantically build a global factory, buy into a global sales and marketing plan, employ 4 of the investor's buddies as board members at $200k/yr, pay high department costs for 9 months before first sale, and adhere to the endless investor restrictions. Then pay 93% of net profit to 'the system' and profit around $254k/year after a one-time, half-mil upfront bonus. He took case b) instead.
Case b) Borrow $45k from a friend's IRA, buy extra molds, some software, hire 1 helper, spread the word and make 1 sale, produce a video of that first build, hit garden shops to sell 3 more, buy more equipment, sell another 2, hire a marketer that can help manufacture, get contract for 1/month, borrow another $80k from IRA-guy's friends based on contract, keep trudging for 8 month and then self-built a metal building... and so on. After 2 years, he's ramped employees to 17, (many ex-cons - his desire), and now earns about $400k, I think. He's paid off the $125k and the 40% tax penalty times 3.2 in that time and has no debt at all. His employees all have greenhouses and get 'royalties' for sales and contracts. Best of all, his prices are below the competition, not above it. I think it works very well.
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